The risk (price risk) that arises from potential changes in the prices of commodities (which in turn affect the derivative contracts in which such commodities are used as underlying). Examples of derivatives (commodity derivatives) are commodity swap, commodity options, commodity futures, and commodity forward contracts. The effect of this type of risk on derivatives may include outcomes at expiration date and expectations depending on uncertainties which will be a factor in pricing, etc.

Commodity price risk may impact both buyers and sellers: for buyers, it results from increases in commodity prices; for sellers/ producers it is usually due to decreases in commodity prices.